US stocks closed slightly higher on Tuesday, with the S&P 500 and Nasdaq reaching new record highs. The AI boom propelled Nvidia to surpass Microsoft, making it the world’s most valuable company.
US May retail sales growth fell short of expectations. Investors are closely monitoring statements from several Federal Reserve officials this week, especially those related to monetary policy.
Nvidia’s surge continued, securing its position as the largest company by market capitalization in the US. The ongoing AI craze has driven Nvidia’s stock to new heights, overtaking other tech giants and making it the world’s most valuable company.
Despite the major US indices setting new highs, JPMorgan’s Chief Global Market Strategist, Marko Kolanovic, maintains a bearish outlook. However, he presented a “potentially positive” scenario that could prevent his negative forecast from becoming reality.
US Stocks
Fundamental Analysis:
Large tech stocks mostly declined. Tesla, Google, Meta, and Intel fell over 1%, while Microsoft and Amazon saw slight losses. Netflix gained over 1%, and Nvidia rose more than 3%, setting another record with a market cap of $3.34 trillion, surpassing Apple and Microsoft.
The chip, semiconductor, and precious metals sectors led gains, with ARM up over 8%, Harmony Gold up nearly 5%, and Advanced Micro Devices, Micron Technology, and ASE Technology up over 3%. Gold Fields climbed more than 2%.
Chinese stocks were mostly down, with the Nasdaq Golden Dragon China Index falling 0.41%.
iQIYI dropped nearly 3%, Pinduoduo and Futu Holdings fell over 2%, and NetEase and Vipshop were down more than 1%. JD.com, Baidu, Li Auto, and Alibaba experienced slight declines.
On the other hand, Bilibili rose nearly 3%, XPeng Motors increased by more than 2%, and Tencent Music and Weibo each gained over 1%, with Full Truck Alliance seeing a modest rise.
Technical Analysis:
(S&P 500 Index, 1-day chart)
Market Trends:
- Dow Jones: +56.76 points (+0.15%) at 38,834.86
- Nasdaq: +5.21 points (+0.03%) at 17,862.23
- S&P 500: +13.80 points (+0.25%) at 5,487.03
Hong Kong Stock Market
Fundamental Analysis:
Hong Kong’s major indices opened higher and continued to rise.
Leading the gains were tech stocks, with Bilibili up over 12%, Lenovo up more than 6%, Xiaomi up over 4%, and Meituan, Tencent, and NetEase each up more than 2%.
Nvidia’s market cap surge boosted AI-related stocks, with SenseTime rising nearly 7%.
Gold stocks rebounded, with Zhaojin Mining up more than 4%. Oil stocks also gained, with CNOOC and PetroChina each up over 3%. Apple-related stocks fell, with Sunny Optical Technology down nearly 3% due to potential daily fines of up to $50 million.
AI-related stocks strengthened, with SenseTime rising nearly 7%. Nvidia closed up 3.51% at $135.58, with a market cap of $3.34 trillion, surpassing Microsoft and Apple to become the world’s most valuable company. Nvidia has surged over 200% in the past year, and some analysts predict its market cap could approach $5 trillion next year.
Technical Analysis:
(Hang Seng Index, 1-day chart)
Market Trends:
- Hang Seng Index: +1.95% at 18,264.51
- Hang Seng Tech Index: +1.96% at 3,769.60
- Hang Seng China Enterprises Index: +2.27% at 6,512.49
FTSE China A50 Index
Fundamental Analysis:
Mainland China’s major indices opened lower, with the ChiNext Index dropping 1.12% by midday as vehicle-to-everything (V2X) concepts continued to surge.
The V2X concept remained active, with Changjiang Communications hitting its fourth consecutive limit-up, Huaming Intelligent, Star Chip Technology, and Soling hitting their third consecutive limit-ups, and Information Development rising to its limit-up.
Low-altitude economy concepts rebounded, with Jiangsu Xinye, Longxin Technology, Sichuan Da Zhi Sheng, and Hengtian Haolong hitting limit-ups, while Jianxin Holdings and Wan Feng Auto followed suit.
National Integrated Circuit Industry Investment Fund-related stocks led the decline, with Sunsea AIoT down over 10%, and Icen Technology and Precision Testing Electronics also falling significantly.
Technical Analysis:
(SSE Composite Index, 1-day chart)
Market Trends:
- Shanghai Composite Index: -0.34% at 3,020.03
- Shenzhen Component Index: -0.85% at 9,239.05
- ChiNext Index: -1.12% at 1,791.02
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